Proper reinsurance panacea to inflation, exchange rate fluctuation – NAICOM


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Chuks Udo Okonta

The National Insurance Commission (NAICOM) has said the current surge in inflation and fluctuation of exchange which are impacting insurance can be addressed through proper reinsurance of risks.

The Commissioner for Insurance, Sunday Thomas, said this in a podcast monitored by Inspenonline.

He noted that inflation remains a great concern to stakeholders in the industry, stressing that insurance is more futuristic than immediate.

He was optimistic that efforts being made by the Central Bank of Nigeria (CBN) would help manage the soaring inflation.

Thomas said he is not too keen about insurance customers seeing what he is doing, but want them to feel his works through prompt claims payment; development of needs meeting products; easy access to insurance products; provision of first class services by insurers amongst other initiatives of the commission.

On how the commission is encouraging innovation, he submitted that innovation is very critical to development as it introduces, enhances and meets the needs of customers.

He applauded the role being played by FSD Africa in assisting the commission in the area of entrenching innovation in the sector.

He maintained that the commission is focused on development which is driven by leveraging technology to reach people especially at the grassroots and encouraging them to consider insurance as oxygen they need to stay alive.

He also stressed that awareness is key to innovation, adding that there is need for intensified awareness creation as many people do not understand how insurance works

On claims, he said the issue of claims is a combination of reality and assumption, adding that most people who talk about non payment of claims do not have a policy but speak based on what they heard.

Thomas submitted that NAICOM is addressing challenges associated with claims through its portal which enables the commission to monitor claims processes, stressing that with the portal NAICOM is able to follow claims from when they are filed to when paid and when there is a delay, the commission would ask questions why the claim is not settled as scheduled.

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